1. Baptist Eye Institute (BEI), a group of nonspecialized ophthalmologists in Jacksonville, Florida, controlling approximately 15 percent of the referral market, sent nearly all of its retina cases to the Florida Retina Institute. Is BEI engaging in an unlawful group boycott against plaintiff Retina Associates, a retina care provider in competition with the Florida Retina Institute? Explain.
2. Discon, a telephone salvage company, sold services to MECo, a subsidiary of NYNEX, a phone company for the New York/New England area. MECo switched from Discon to AT&T Technologies, a Discon competitor, and paid a higher price to AT& T than it had paid to Discon. Discon claimed that the buyer and NYNEX then received a rebate from AT&T at the end of the year. Discon argued that NYNEX was able to pass on its higher costs to its customers because NYNEX was a part of a regulated phone market. Discon claimed that NYNEX, its subsidiaries, and AT&T were engaging in a group boycott in violation of the Sherman Act in order to drive Discon out of the market. Decide. Explain.